In a letter to Commissioner Rahul Kumar, MANSA said the insistence on Demand Drafts in practically all cases where an NOC is sought is creating a significant financial and operational burden for shipping agents.   Vessels loading export cargo from India are required to obtain an Income Tax NOC and submit it to Customs for port clearance. According to MANSA, shipping agents are required to file provisional tax returns on behalf of freight beneficiaries and submit documents including the PAN, ship registry certificate, tax residency certificate, incorporation documents, charter-party agreements, crew list and relevant declarations.   The association said agents must also determine the availability of tax relief under the applicable Double Taxation Avoidance Agreement (DTAA). Following completion of the voyage, a final tax return is required, supported by documents such as the freight manifest, freight invoice and proof of freight remittance. MANSA said that where the Income Tax Department has doubts regarding the adequacy of supporting documents, security may be sought against the potential tax liability. The association noted that security has traditionally been accepted through instruments such as bank guarantees or, in some cases, cheques or other suitable instruments.   However, it said that at Mumbai, Demand Drafts are now being insisted upon in practically all cases involving NOC applications.   According to MANSA, shipowners and disponent owners are generally reluctant to block substantial funds, particularly where they are eligible for DTAA benefits. As a result, shipping agents may have to arrange the Demand Drafts from their own working capital to avoid delays in obtaining the NOC and securing vessel port clearance. The association said that blocking such funds can create cash-flow pressures for shipping agencies and may contribute to vessel delays and additional port-related costs. It also expressed concern that the practice could affect the ease of doing business for vessels calling at Mumbai to load export cargo.   MANSA has requested the Income Tax Department to review the existing procedure and consider alternative forms of security, including bank guarantees, undertakings, security cheques or other acceptable instruments, depending on the circumstances of individual cases.   The association has also sought a uniform and proportionate mechanism that would protect the interests of the Revenue while reducing the financial burden on the shipping trade. It suggested that the requirement for security should be applied based on individual circumstances rather than as a routine requirement.    In a follow-up communication dated September 8, MANSA said its Executive Committee members wished to discuss the issue with the Commissioner in person and requested an appointment at a mutually convenient date and time.